This occurs when financial organizations provide loans to low-income clients or solidarity lending groups (a community of borrowers)who traditionally lacked access to banking or related services.

Question

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Microfinancing provides loans to low-income clients or solidarity lending groups who traditionally lacked access to banking services. This enables small businesses and individual entrepreneurs to start and grow their businesses, which in turn can lead to economic development and poverty reduction.

This Occurs When Financial Organizations Provide Loans to Low-Income Clients